Calculate the price of the bond if the yield to maturity (YTM) is: 7% 9% 5%

Q: A bond issued by a Company pays 5.25% coupon once a year. If the bond matures in 15 years, and…

A: There exists an inverse relationship between the bond prices and the yield to maturity. If the YTM…

Q: The face value of a bond is $1,000 and its coupon rate is 3.80% with coupons paid semiannually. Its…

A: Current yield of bond is computed as follows:-Current yield of bond =

Q: ce value of a bond is $1,000 and its coupon rate is 3.10% with coupons paid semiannually. Its term…

A: Current yield coupon rate on the market price of bond.Current yield of bond is computed as…

Q: An 12% coupon rate bond is maturing in 1 year has a yield (YTM) of 6%. Assuming a face value of…

A: Macaulay Duration = Σ  [T * (C / (1 + YTM)) + M / (1 + YTM) ^ T]Where:T = Time period (in years)…

Q: to trade at par? A company releases a five-year bond with a face value of $1000 and coupons paid…

A: Face value or maturity value = Q = $1,000 Semiannual YTM = YTM = 0.03 (i.e. 0.06 / 2) Semiannual…

Q: Suppose a bond has a face value of $1,000, with a coupon rate of 8%, and five years left to…

A: YTM is also known as Yield to Maturity. It is a capital budgeting technique which helps in  decision…

Q: Yield to maturity The Salem Company bond currently sells for $1,213.45, has a coupon interest rate…

A: Given Data: Current Price 1213.45Coupon Rate15%Face Value1000Years (NPER)13

Q: The face Value of the 8.5% bond is $1,000 with a maturity period of 5 years. The bond is selling…

A: Given: Coupon rate = 8.5% Face value = $1,000 Years =5 Current price = $943.15 Yield to maturity =…

Q: A company issues a callable (at par) 20-year, 5% coupon bond with annual coupon payments. The bond…

A: Bond period = 20 years Coupon rate = 5% Bond price = $103 per $100 face value Callable period = In…

Q: Assume that a bond has a current price of $922.32, a coupon rate of 10 percent (pays $50every six…

A: Bonds are debt instruments issued by companies. The issuing company pays periodic interest or…

Q: A BCE bond has 11 years until maturity and a coupon rate of 6.9% payable annually, and sells for…

A: face value = $1000n= 11 yearscoupon rate = 6.9%price =$1070

Q: A bond pays a 6% coupon rate, face value 1000 dollars, discount rate - 4%, maturity ( number of…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: Microhard has issued a bond with the following characteristics:   Par: $1,000 Time to maturity:…

A: Price of a bond can be computed using the time value of money concept.   Essentially price of a bond…

Q: Bond X is issued by the company two years with 12 years to maturity. The coupon rate is 10% and…

A: We are given the following data :Years to maturity : 12 Coupon rate : 10%Yield to maturity : 12%Par…

Q: Bond A and Bond B are 6% coupon bonds, and have a 7% YTM, and pays annually. Bond A is 1 year from…

A: Bond valuation is the process of determining the fair value of a bond. The value of a bond is based…

Q: The Salem Company bond currently sells for $955, has a 12% coupon interest rate and a $1,000 par…

A: Bond price = $955 Coupon rate = 12% Par value = $1000 Coupon amount = 1000*0.12 = $120 Years to…

Q: A 15-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate…

A: Bond Equivalent Annual Yield = (face value - purchase price) / Purchase price *1/no. of years

Q: Bond Z pays $98 annual interest and has a market value of $870. It has five years to maturity.…

A: Solution Given Annual interest 98 Market value 870 Years to maturity 5 Par…

Q: The yield on a bond is 6% annual. The face value of the bond is $1,000. The bond pays semi-annual…

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Q: A 14-year, $1,000 par value Fingen bond pays 6% interest annually (assume semi- annual payments).…

A: Bond price refers to the current market value of a bond, which is determined by the present value of…

Q: Calculate the yield to maturity for a bond that has a $1,000 per value, 15 years to maturity, a 4%…

A:

Q: A S1, 000 par value bond with a 7.50% coupon rate (semianual interest) matures in 6 years and…

A: Yield to maturity(YTM)  is a financial metric offering insight into the anticipated total return…

Q: A company issues a callable (at par) 20-year, 5% coupon bond with annual coupon payments. The bond…

A: Since , the bond is callable after a year or anytime after first coupon payment , so we will…

Q: A 10-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate…

A: Bonds refer to instruments issued by companies to raise debt capital from non-traditional sources.…

Q: Give typing answer with explanation and conclusion  A bond pays coupon rate of 5% with interest…

A: We will use excel NPER function for calculating number of years to maturity . As interest is paid…

Q: Microhard has issued a bond with the following characteristics:   Par: $1,000 Time to maturity:  21…

A: Par Value =1000 Coupon Rate =9%  Coupon amount = 1000*9%/2 =45 Yeasr =21 Terms = 21*2 = 42 YTM1 =…

Q: A 5-year bond with 10% coupon rate and P1000 face value is selling for P1,054.30.  Calculate the…

A: Yield to maturity is referred as the total return, which are anticipated on the bond, when the bond…

Q: A 10-year bond with a face value of $1,000 has a coupon rate of 9.0%, with semiannual payments. a.…

A: The objective of this question is to calculate the semiannual coupon payment for a bond with a face…

Q: Innovative Financial Inc. issues a bond with the following information: Par: $1,000 Time…

A: Par value (FV) = $1000 Period = 20 Years Quarterly period (n) = 20*4 = 80 YTM = 8% Quarterly YTM (r)…

Q: A 20-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate…

A: Bond maturity is 20 years Par value of bond is $1000 Coupon rate of bond is 8% Bond type: Semi…